In Japan, U.S. Defends Fed Actions

[alp227]

Source: The New York Times

KYOTO, Japan — The United States confronted growing restiveness with its economic policy on Saturday as leading Asian countries resisted its call to set limits on trade deficits and surpluses while also warning that the decision to pump more money into the American economy would have harmful global repercussions.

The heightened wariness about United States policy underscores the difficulties facing the Obama administration as it experiments with ways to shore up the economy. The strategy differences will present a challenge to President Obama when he travels to Seoul this week for a meeting of the Group of 20 nations, where leaders will try to reach a framework for correcting the trade imbalances that economists say threaten a fragile global recovery.

The growing divide was evident here on Saturday at a gathering of finance ministers from the 21-member Asia-Pacific Economic Cooperation forum, after several days of sharp criticism of the Federal Reserve’s announcement that it would buy $600 billion in Treasury securities to bolster growth.

Countries like China, Brazil and Germany have warned that the unilateral move devalues an already-weak dollar, and could set off a destabilizing flow of funds into emerging economies that will inflate their own currencies and make their exports more expensive.

Read more: http://www.nytimes.com/2010/11/07/business/07currency.html

[Imperialism Inc.]

1. I didn't read the entire article but the last sentence quoted is very weird.

So China , Brazil and Germany have warned us that our actions may lead to exactly the result we were hoping for? One of the overall goals of US policy is to lower the the overvalued US dollar so our exports will be cheaper to other countries. "I'm warning you, if you do that you may get exactly what you want."